Should You Buy Bonds When Interest Rates Are Rising?

In reviewing recent issues of the AAII Educated Investor, I thought this one from August 9th and its slew of articles was particularly relevant in terms of the current environment of interest rate increases, inflation, and the growing fears of recession.  Of particular interest is the key article "Should You Buy Bonds When Interest Rates Are Rising?"  We're having a wonderful weekend.  Let's enjoy it.  

Tuesday, August 9, 2022

This Week’s Highlight

Yield Curve Inverted, but Not Yet Signaling a Recession by Charles Rotblut   The yield curve is a closely watched harbinger of recessions. Inverted yield curves have previously preceded most recessions over the past 50 years.

Members-Only Feature Article

Should You Buy Bonds When Interest Rates Are Rising? by Hildy Richelson, Stan Richelson   Whether interest rates are rising or falling, a custom ladder of high-quality bonds will produce a consistent cash flow.

Hand-Selected for You

Tracking the Market's Expectations for Interest Rate Hikes by AAII Staff   A measure we follow to gauge expectations for monetary policy is the CME FedWatch Tool.

Guidelines for Selecting Bonds and Cash-Like Instruments by Charles Rotblut   Key characteristics when analyzing bonds, choosing between bonds and bond funds and the role of laddering.

Online Exclusive: What Is the Yield Curve? by Matthew Bajkowski   The yield curve of U.S. Treasuries is a beneficial tool for investors in that it may identify major potential changes in the economy ahead of their occurrence. It is also free to the public and easy to use.